ELURU: Aqua trade in West Godavari district was paralysed following a trade bandh by aqua traders in protest against the Government's decision to levy tax on incentives on aqua exports.

The aqua traders resorted to stalling the trading of aqua products from Monday following a State-wide call given by the Sea Food Exporters Association of India. The traders said that the Government's move would hamper the country's export potential in aquaculture. The strike hit the transactions in all the 50 aqua export agencies in the district.

It may be recalled that the Union Government had been extending 5 per cent of incentives on aqua exports from 1997. The Union Ministry of Finance has recently decided to levy tax on these incentives with effect from 1997.

The association leaders said the Income Tax Department personnel were reportedly insisting on payment of tax on incentives right from 1997 while sounding a warning that their bank accounts would be frozen if their directives were not complied with.

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